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tv   Fast Money  CNBC  July 7, 2009 12:00am-1:00am EDT

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this is "fast money," li from the nasdaq rket site in nerk city's times square. i'm messa lee. the are the "fast money" traders. stocks making a rebound fromhe lows of late afternoonbut traders couldn't te their eyes off the l ade which lost 4% today ananother steep decline. can the maet reay rally without cre? time for the word on the strt. let'go straight to the heart of the actio bring in a liquidator who' trading oil right now. we had a closen new york trading, but it's still ading e, characterize what the session looks like rightow. >> i tnk this has been a wild ur or five days in the oil market. it's been the liquidatioof the reflation trade. that's what wee seeing going on the questionecomes, is that over rig now? it started lt week when we had
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unauthorized trading. you had run up the price ooil above last year's high. wh you're seeing right now is stability. stability back in the oil e. an again, it comes down to a question of what do you do now do you gwith this and play from the shortide, or do you actuallyoofor certain things in thenergy sector to actually get long again? >> joe, at areou doing right now? >> right now i am osing out some positions that i haon later in thefternoon. i actuly got a little bit long today, melsa. i think that was actually the trad it worked ll. most of the lower pricedction was overnight. that's what you're seeinright now. when you came in after 9:30, oil really modestly rose throught the day. whatou also saw today -- yore seeing this now. you saw the s&ps rise. and we've also spoken out the dollar a lot. i've suggested the dollar as a vehicle to plaas a hedge against everything rolling over. i' gotteout of my dollar ade. it looks like the dollar now looks a little biteavy. >> joe, two things how much was the o trade down? you saw it two times me down an brent.
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which i think is really the benchmar the u.s. overall, how imrtant was that today? >> i don't think thesl roll s as significant as it has been in prior months really what happened, tiy, was e overnight trade was so overwhelming. oil ened up a dollar lower based onhen it went out on friday. we had the holiday on frid. opened up a doll lower today, and en you had significant selling roughout the night. you d to stay up last night. i sted up all night watching it. they were seing it overnight, overnight, overnight aggresvely. that selling was cg from ovseas. once we opened domestically america and the futureselling, you didn't see the open we saw overnight. looks like people got out overnight. >> we'll check wh you later on in the show and see how your trading strategy is pulling rough. let's go to e chart right now. s&inil trading in tandem last month. actually, it's a long story of trading inandem. who is leading this market? i think for the most part
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we'd all agree that crude oil going wn is going to be good for the consumer. i don't think cre oil is going toa lot lower myself. i saw a lot of speculationf buying out of the money calls in hk, peol hawk. i am long in that name. >> the oih is well oveone. we started coversome shorts toy. i actual think is a place you stt to get back in. i repeat the fact that cheap oil is cheaper petl dollars to drilagain. thh, probably the highest beta to the ctor. i think this market can rally with the oil i think today's ism data t this morning nonmanufauring was very imptant. a 47 print was very positive on the upside. the orr is part of the index. i think there's strength ithe economy not fo$75 oil, but certainly for 0 oil. that's wre thearket should be.
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>> at what point ds it catch up? at what poindoes the market see,es, this is a catalyst for the consumer. >> i don't think that's wh i is. >> i think it's a proxy for economic health. if we don't see an economic recovery and tt's whoil trades lower, at's probably not a good thing for the consumer. higher unemployment, less growth, less dollars tspend for the conser. >> i'm not so nvinced this oil et is going to bounce. i wasn't so impressed th the actions today. the fact is it was dowall day and stayed down. we said it was going t63, basically getting ose to it now. we'll see if it bounces. frkly, i don't think we ar i think the double comps we talked about last week will stl hold up. if we have an up day tomorrow, that's fine. lower.ink the trend in oil is >> i agree. our friend tom mcclellan said the nice thing. thguy's got an oscillator named after him, the mcclean oscillat, and tom e-mailed me after the halftime report today. >> i wisi had own oscillator. >> here's the melissa lee oscillator. we're going to see a btom for
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crude oil inhe endf july, beginning august. be very short term for this. it like dance steps. hn, you've got long legs. you're going to be dcing in smr steps than the lovely karen finerman here,nd for that reason, it ads for about fouronths, just like i would try to lead kare >> we all ow how that would rk. >> we see thttom of crude oil in august. >> end of july, rly august is when he's edicting we'll see a bottom in crude oil. i'm looking for the sa thing as a trade, like j said, you can buy it on big $3 drops like today, but i think you getut very quickly. i don't think we hava longer term bottom until that hns. >> stocks boding last half hour of trading on t heels of severadefense categories. dow closing the day higher by 44 points, helped by shes of merck and prter & gamble. also some very interesti trading in genal mills. general millcame out last week and raised its fisl year forecast and traded highern thursd. >> the thing about gener mills, we talked aut them last week. $60 was the high back in february, lot of trouble
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there. right around n 51/2. general mills did great thin. theyasically said the same thing on june 7th raising guidance. they didn't tell you athing you shouldhave known a month o. i like genal mills. it's a nice luation. 's had great run. 60 has been resistt. i think thatould continue to resistant. i woget bullish to close ove 60, but i don't think that's going to happen. >> it seems that'she area of the market that is going to ho up. >>e lk about names like walmart, p&gkraft. those are going to be silar to general mill i want to n that state. it idefensive, and it has not run up nearly as much as some of the other names that ihink are exnsive now, especially if we're goin see the sideways mark for a while and a conser that is uncertain. >> trade ithat space which is more a spinoff even the commodities se. rio tinto's packaging un is being bought bbms. they're up 5day.
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consumer packaginga lot of these fo stuffs packaged by general mills, that's a good place to be. >> we're seeing it oe equity side b ao seeing an expansion in t vix. coumers e getting a little more defensive when comes to buying ptection. >> that's what thewe doing this morning because they sold it off too hard leading into the long independence day holiy. wh i mean, of course, folks is people know we're ing to have three ys when we don't trade, iday, saturday, sunday. ey priced in a monday date and didn't know cre was going to down $3 and would pull the s&p d dow down with it. becae of that, the spot price of the vix, the panic hit this morng. we did not see a move inhe futures. in fact, the futures were wer going into thend of the day, and ey were never up very much. what does th tl you? it wasust a one day or two day event, spike in the vix, and we're coming rig back down settli in. ill be in the high 20s to low 20s.
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>> what that telling you? the market is not too concerned about earnings here? in other words, we g to a ple ere the vix signals were almost saying sell. we've come too far too fas you're telling me you think it's going wer, but you're telling you you think the market is going higher. >> alcoa is going to be crap show when it com out with its earnings. who ishe big buyer of what they're sellright now? aircraft primarily, and o's building a lotf airplanes right now? body. for that reason, i think you're gog to see -- >> boeg is trying. it just not the way they hoped. >> they' trying. theyan't get the thing off the >> do want to buy prection.
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that is why they pushed back the spot. >> alcoa to me, we talkeabout it last weekthe aluminum aluminum doesn't go aw.. it takes a lontime to diminish inventors. i'm not optimistic about alcoa's earnings. when i say, i think down to 5. then it gets interesti. >> next trade here, tess cannot fight higher today. one-time performer closing to the down side. shares of microsoft, intel, apple, all clong lower today. >>ntel, 92.5 million shares, traded up to $17.31. i remember sayg time to get out. it overshot on t up side. it did. still think the range of intel down to 15.75 is your ne bottom. ed to be 15. i do own intel. i think it trades lower. you had may semi sales f $3.5
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billion. it was up 5.5% monthver month. good news. you know what, these stos, people have been runng to them anthrowing money at them. i think eye a little too early. i think th've pulled back. >> i think agree you actually have a trade back the nasdaq bouncedack up this leadership walost, and we've taken a lot back. a cole of names, microsoft, and we showed the chart, ia name where peoplare fundamentally tting excited goininto the earnings season. with mr. softy, i wod ke an opportity to buy it on the weness. i don't thintech is done. i think it's your bellweatheto follow the risk trade. wounded, but maybe trade bac >> what aryou doing with miosoft, karen, these days? >> just regretting tt i ever heard thticker. we're nodog anything with microsoft. we do have aisco position that ed out a couple of pennies. i still think 's attctive. it hasn't mod much at all in the last six weeks or so. i think it attractive. i think the riskard, they have t of cash. i would be a buyer here.
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>> dell today getting the benefit of a positive noteut of sanford bertein. also, we he ibm about $100 a share. >>lose to $100.80. we said 00 is its value. they told you what they're going to me not only 2010 but 2011. we talked about it. a fair multiple for ese guys puts yout $120 stock. i believe thatlthough on a lotape they're clearly going to overperform. i like ibm. benign tapes, the stock goes back to 105. >> shares of the cret card nas, american express leaving the group higher. upgrading stocks frohold to sell. sayinghe stock would be affected by new regutions that essenty caps increasing the credit cards rates tha companies charge becausehey mand of their customers that customers pay in ful thatas been out for quite some time. still got a bu hher on ameran express. >> you look at mastetrust,
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charge-os, 10.4%, april 9.9%, marc 9.7%. that's trending e wrong way for amican express. they ted less than visa but much more expensive th mastercard. mastercard got down to $1.55 a few weekago. i'd ther own mastercard than american express. >> bank ofmerica has tremendous exposure. edit suisse with a good note out today pointeouthat bank of america is up 10.6% itheir credit card bt. they will be writing them off. thiss actually a trend that's not improving. going into third and fourth quarters there's addional ncern these numbers get woe. this is ur problem for bank of america, for jp moan for credit. these e the place that's they're the most exposed. i do think tt capital one -- ain, who are the guys whose business has bn maden credit cards? capital one is probably front of that lt. >> later on in the show, we' tell you whi wall street whale
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de $17million on that amex upgrade. first, a look at discoshares falling tehours. it did announce aftehours would offer $500illion in stock. we did see the after hrs dip. any buyers seems like a good time to go out on the market for the credit card companies. of late, they haven't en doing too badly. >> ts isn't my favorite name. to me, the a distant third. i'd rath go wi the cream of the crop, either mastercard or visa or american expss. i'm t sure why they're raising the money. they wanted to give back t.a.r. funds i'm not clear. >> i'm wityou. i like visa bett, pickf the litter. mastercard is number two. capital one would be theottom of my list. >> anoer area working today, consumer staples, procter & gamble, clark, colgate all closing higher. consumers looking to a bit re defensive here. do we like these names?
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>> a lot of news out of russia we heard aut kraft last week and pepsi and so of these guys. there'growth in emerging marks, a place for a consumer base that a lot of theuys haven't taed the big issue for these gu is not on doing business on the grou in china and russia, but building out distribution networks, ich is a big part of logistics chain. i worry about at for people like pepsi and coke as there trying to gr in places like russia. however, it's very positive playand i'd be buying coke on this play because of the growth in easteurope and tiamerica.
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>> next trade here, tradinthe globe. obama is in russia. timmy made reference to is. companies maki big stakes in th country. pepsi anuncing a $1 billion investment in a bottling pla intestingly, because companies are investing in plants over there, it doesn't necessarily reect threalities of inveing in the stock market. william browder of hermita capital, which ia big investor in rsia today, on "power lunch" saying he'd rather ben stocks in placesike russia, but oubts these companies, because if you inves$1 billion in the plant, u can't sell the plt. it's a liquid investment. >>e's do well in russia, but i wouldn't use him as the benchmark. but doing business on the grnd in russia is tough. these announcements by ce and psi, these are clearly coinciding wh the visit out e. two leaders atave ascended to the throne, replacing two leaders that didn't want twork together. and we're more ccernedbout the domesticonstituency than working things out ternationally. the st important thing is the
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mutual destruction that all at least attpted to set up in e '80s is going away. these guys are making prre on nucleareproliferation. that's vy positive. probab bad news for uranium producers. if you'rtrying to stretch a trade, ccj, some of e big uranium producers, know the' going be a limited amount of uranium productionnd goi to be controlled. today was good news for peop that want to see us ving sensible dialogue with rusa. i believobama is doing that. i t think there's great trades. >> it's a story going forward. it's n a sto right now. eyctually have less busine with us, as you heard peaps on "squawk" thimorning than with poland. lessack anforth with russia, ich is 20 times the size, at least 10 times the se of poland. for that reason, it's a owth story going rward. it's not happening yet. >> let's go back to thstory of the day. commodities getting kied. u.s. steel, ala, down more th 9%. dennis of the gartman leer joins us from rginia beach. alwa great to talk to you. >> good to be here. >> did you use this ss a bg opportunity r e commodities? >> no, was using last week as
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selling opportunity a position to reduce my potions on crude oil. i had been long on the high beta stocks and short othe low betas. that was the oil trade. that was the bullishommodity trade. i've been tryingget out of that since lt week when they d the outside reversal. as we went to new highs, it began to wid. all signs that the cdity market was getting well overdo and lily to correct. even i have to s i'm surprised by the seriousness and the viciousness of theorrection. is it a buying opptuty? i don't ink so. >> what are you looking foin terms of a bottom here in the commities base? dr.. had a chart leader in terms of whe the bottom might be. which places the low f oil at the end of july, beginning of gust. what do you e? >> gold is as good as any. right now,verybody you know is bullish on the gold market. the idea of inflation ming ba has gotten everybody involved. the consratorialists are out there buying gold.
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gold, i think, acts rath poor. had been bullish for golfor a long period of time, but i have no position on it. if you made do something, i'd ll it. i'd rather leave gold alon right now it looks like it wants to go lower. >>uick question. in oil, would you be looki for a specific dollar mark, or will you looki for a change in sentiment that would make you decide to get long oget shorter? >> i think we can take gold do to 880, 875, just engh to make everybody angry. >> and for oil? >> for oil? markets have a wayf going to what ialthe obscene number, the nuer that nobody believes possible. i guess i real wouldn't be surprised if we put a five number up as theig number, just enough make everybody upt. just as we got above 75 last week on an mistake, on an erro we find out now drovit above $75. i bet you put $59 up there just to do it, just to ma everybody angry. >> dens, that guy i was quoting from earlier, you know
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him, of course, tom clellan, mcclellan oscillator. he washe one saying gold proceeds crude by about four months. he was looki at time and not price. you've just kind of given us a ice. mae we can get a washout in the high 50s before we get bk to buying it a. >> i wouldn't beurprised if that that's what happens. watch what goes on in e term structure. watch the term structure. tch the relationship from one month to the next in the cde oil market. if we're starting to go weak to the bottom and l of a sudden t tm structure starts to narw, that will be the signal to start be a buyer. my guesss we'll get down in the her 50s just to do it. >> alcoa reporting tomrow. what areou doing with your position at this point >> i still own a bunch of alcoa. i wrote calls against itast week. glad i wrote some calls. i wish i'd thrown the whole thing overboard. i thinwe're going to see awful rnings. alcoa has given us bad earnis the last seral quarters. again.ing to get bad earnings i still own some, but i've reduced my position amatically by selli calls.
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in a l long ne of amazing perfrformamachines. is is the new e-coupe. this is mercrced-ben
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anwe are back with more "fast money" livive at theasdaq maet site in times squarare. stimulus not workingng for y here? we've got news for youou. ththe u.s.sn't the only place to make money. all ththis week,he global ststimulus pns that are working so youan ditch the hometown n blues. mike g gerka is global and power
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stratest in international funds. mike, , what mket is about to explode? >> explaining itit's not a about us. buthe dynamic of our environment is you can i invest abroad and d do it anyime you wawant. at theame time, you have to o use good common sense e to see where the e advantag are right now. for much the samame reass that wewe saw earer this quarter as we started to unfold intnto the summer, i ththink taiw and southeast t asia ia very good place. not only are youou gettingreat demandight now but technologogy is king g over tre. from a price perspecective, know wages arere low, ofits are hihigh, and ght now we're seeing huge allocationsns into at part ofof the glo. >> what is i it specifally for taiwan a southeast asia? e they feeling any benenefits from t effectiveness of china's stimulusus plan? >> you hit the nail onon the hea therere. what happens i is you gethe back
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draft fromom china wh taiwan. there's such a close assisimilationetween the two cotries, but yet if you wawant to look at t tax strtures or at least w the market dynamic o of small cap compananies becong very large ovevernight oat least getting in-flows intnto capita into those firmsms right n is such a an advante. >> isn't this, though,h, heavy reliance on china a for a imulus package thatat a lot opeople think k is moneyoing straight from the banks intnto the maet. if china falls dowown and ist real -- - i don't ink china is a mira, but i think this grorowth is temporary. i worry about taiwan. wewe'll see at happens with tech here. >> i tnk it stands alone rigight now. itit's a vergood point. we know what an importrtant dynamic china has s in that environment.t. for the sasame reaso, i think on a dadaily, quaerly, monthly basis, hever you look at it, taiwan is ststarting tstand on its own. it gs the back draft of chchina, but it still has the conglomerate of ththese compies togethther as a sket. it'sery exciting in technonology right t now. i ththink th's where the doldru hit on the hardware siside here,r some of the microsofts of f the worland who
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they'r're doing siness with. what hapns is you're starting to s one focalization of w where this mon is start to go. >>s it just tech and taiwawan you like? >>'m keeping it to tech h though now. the reon why is you start looking at some of thehese retur just on the e basketon the index itselfnd how they've done ththis year, you think, manan, thisas reallyly topped f. much l like thcommodity play you were talking abobout, i n't see that i see morere follothrough and indepeence. that's what it c comes dowto. >> mike,e, just ickly on south afafrica, u mentioned the coodity play getting tappeped out. if you were a believever of th and lookoked at thfundamentals of south a african enomy, unemployment in doublele digit rate, whatat is the esis in ininvesting ere? it sms like it's downhill.l. > the lasindoor recession and is not t the brighst of futures. maybe the smsmallest mget in the pararade or thfiasco, but the point what you're seeing withth uth africa is they havave more than just mining outut there i thk what i'm seeing right t now is a an allocaon of actually a continent.
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you'reooking at who's the leader right now. what happens is from a an infrastructuture play ere's a lolot of amecan companies that wawant to geraphically distribute outut of thisrea, and at t the same me they see where e dynamic of where they y can go from. i think the e outragjust alone ininto asia,orth up into europe, and of coursrse the amnt of money comiming in om the united statesn these etfs is really being bebeneficialn the return. agaiain, there a big difference between n how the ock markets are dog and the economies are e doing. >> got it. mike, great to havave you th us. ti for rising star. each week "fast money"y" picks a small cap stock k that mig be poised t to breaout. this week,k, karenwho, as you knknow, a ther of four, looking a retail name near anand dear to her heart.. perhs you bought a few oututfits at this place. >> i have. i n't have a lot in retatail spacace, but ts is a name that i , and this is childrenen's place. the reasason i le it is i love thr target customer. it's a mother. motherers are lohe to cut out spenng for their kids,
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especially wherere it's value propition like children's s place provides. they have a $73030 millionarket cap, and thehey're tding at ababout ten mes earnings, which is verery attrtively priced. in aition to that ten timemes earnings, they have e a fanttic balancnce sheet. $6 a shahare of t cash. soso this is- there's no levege at all obviously. it's a great balance s sheet. excellent cashsh flow. and the e valuatiohere is good, but t there's couple other things that make it t intereing as welell. the exex-ceo ezrjava, he and his group haveve 22% of e stock. is a director on the e board as he is a directctor on thboard as his father-in-law, i b believe hehe is puttg forth a slate at the july 31st annual meeeeting t replace ththree direors with three ofis own. if, , in fac he does win, then he will have five seatats out of nine. know he would like to o change management.. the company did see sosome of their best g growth unr his direrection alough i don't belie he's going to be ceoeo. to me, the risk/rewaward see veryttractive. i don't see a ton of d down side
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it hasn'moved up a lot with somef the specialty retaililers. and you have potentitial for a catalyst herere. the e thing i would buy, i i think k you cod buy it at this level here. i thinink thursd you're going to see sametore sales. th might not be great. that's okay. that wld give an opportunityty to buy some more.. plce is the tickcker, chdren's plplace. >> time for a fast f forecas whe meteorology meets the e our direcr. our vestor tells you whetherer to break out thehe umbrellthis weekek. >> hi, melissa. blue chip day in new y york city weather-wiwise. however, that's nonot the se in the e u.s. equy market. 've been in an eight-weeeek consolidation. we're turning over e even mores of l last thsday and today. my fear r is we from a cloudy weathecondition to full out t in storm if we close b below 4. we need to hold that l level. tuturning crude oil, i have a mixture of sun and c clouds at this point.. are turning over a lilittle bit.
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've traded down $9 a b barrel in the lalast weeand a half. really follolowing theoattails of the eity market. veryry good suort at the $55 level. i don'expect crude to get below that. we could stay between n the $68 and $58 level l the ne few weweeks. nikkkkei ind, you can see the ce ski slope coming dodown here, ,500 resistance traders,s, came right up to it a a week ag we backeded off. i still think 8,80800 holds s support, butut you cou fill betweeeen thostwo levels. let's s take aook at the recap. s&p 500, still price p pressure, cloudiness. not a full raiain storuntil we get below 87874 on a cse basis. crcrude oi still clouding the picture. nonot a raintorm until we get ck below $62 a barrel.l. nikkei, more backingng and filling. i ink the market ranges s bebetween at 8800 level and 9500 for the next few weeeeks.
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>> cloy s&p, partly cloudy oil, partly cloudy thehe nikkei. tim, what do y you see f the nikkeiei? partly cloudy? rtly sunny? >> partly cloudy. again,n, it's a ass -- that would a glass half empty. i'll call it partly susunny. the nikkei hasas probabl tperformed the last cocouple of weeks. ewj is a grereat way tget exposusure if yore looking to buy e nikkei. i do see more risk if wewe see t dollar unwnwinding. ththat killshe japanese exports. this is stilill a hugexport marketet. last week, the t tan kan svey whicis japan's state of ththe onomic union was not economic unionon was notery bullish.h. they havenen't turnethe corner. they nd g3 growth, and they are the big two in g g3. they're not there e yet. >> tre you have it. coming unext, don't get angry,y, get guy adami's stock k of the day. there he i is. itit is one the best vehicles out there for r capturincrude, anyou can trade it rightht from home. stick k around
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tonight's trader radadar, we look the stock k lighti up screenens acrossall street today. this shoe sellller orinated as a subsidia of the popular olworths retail chain n and is now best known for i its emploes unifor resembling those of referees. despite a good c call fromarron, the stock k couldn'tuite perform today,iving up its early gains. who o is it? when "fast moneyey" return tdd#: 1-80800-345-25 td: 1-800-345-2550 i want everyththing righ where i can find it.t. d#: 1-800-345-2550 anytything thamakes trading easierer. tdd#: 1-1-800-345-50 i wanto be right in the mimiddle of e action-- you u know-- iave to see what's goioing on.tdd0 tdd#: 1-0-345-2550 and whenen i pul the trigger... tdtdd#: 1-80345-2550 ...i've got to get the bestrice out there. tdtdd#: 1-80345-2550 (announcer) trtry the w schwab.com tdd#: 1-1-800-342550 for yourself. tdtdd#: 1-80345-2550 call 1-888-4schwab tdd#: 1-800-345-5-20 or vis schwab.com/tradeder day. tdd#1-800-345-2550 but when it does... tdd#: 1-1-800-342550 ...man... do i lovehat feeling. right now, 1.5 llion people
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trader radar tonigight footlocker. the nation's largest retaiaileof athletic footwear r s s onof the most actctivnanas on the nyse totoda are back. welcome back to "fast moneney. we've got a big secocondalalfor you totonit.t. o stocks on the dow thth c cou hahaveadadyour money today. one is the f ft t slh, and the her one helped wall ststre whalaleaearn $175 million in juju a few hours. we'll tell you what the e tre e is. plplusrading after dark. oil continuing to move posost market. j.j.t.the liquidator has notot left the screen. he's watching one tradade 's's mangng n. and the e rnrn tde. you may bebe tptpt blush, but we araren, and corporate americic isn't either. ey are making a killining f f it. i'i'llell you how you can as well. oioil r risg.
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feeling g li y youe missing the ray? you're not a alo.. guy has the e sotition i is e stock of the day. y, what is it? >> thanks, melissasa. >> you're e weomom guy. >> june e 11, , slberger. i i idid lk for a pullback, you got it. jujusts s thstock will overshoot on the up side, it will l ovshoot on the down side. -w-wk low of 35.50 basicalally a correction that i i ju t tol you about isis9.9.50 i think we'll l geththe, and you wa t to bble up schlumberger at those levels. this is a stock k th's's n down soso 20% in the last couplple weeks. shouldldn'bebeown here. i inink ey're going to overshoot. 9.50, you buy it. >> k kar, , is is a name you ke? >> i d d't't he this particular onon have rigg.
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hahasn w wked in a couple of weeks. but i like thehe o.. as far as whwhe e itoes on the shshortete, i don't know. >> t thiisis o of the best short rmrmover the last few weekeks. i gogoitith y. get back in.n. >> time now fofototodas edition of popopanand ops. pop for dadataomomn. >> that's an o oldasashied biddininwawar. emc c pipingheir bid. i i dot know if this will be the last bid w we' s see i'm not a buyer herere. >>ensec down 3%. > pbabablclose to 8%. they're goining d droa lot of isis gwth. up to 10% % ofdpdpnot very good. earnrnin s sll positive in india. >> drorop r r s. steel, down 6%. guy? >> is it a run-up p ofununctn of demandndr r a nction of spececulioio inventorieies s sel make you believe it's speculalaonon. i think it has r rooonon t down sidedemamayb29.
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but u.s. steel gets s trtracve below 30.. > p for dendrion. it was up for the sessioion. had a target of $50 on ththe stock. provengeges s prtate cancer trtreaenen people wishing t theboboug it, not only invesesto b b companies like glaxosmithklili a andristol myers. i think it doeoegeget ught by year e end th $ $50arget is a good one. >> pop up 3% foror ntetel. >> hopefully, , ths.s.c., which is conontelalang a meager upgrade of broadbabandilil include spspntnt ntel products. >> with a lot of ferertizeze kekersmosaic down 3%. >> these guys will b bgegettg a big look.. g8g8ilill lk about farming rather thahan nanati food. t's grow the stuff. very good for agag. >> drop for solar, which w was down 10%. >> the johnsns m movlast week
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was ldk k lalar thursday at $4.20 lowewengng gdance thinking noneneould see it over the weekend. onong. down 10%. should have e do w wor. i like e er r mu better. >> thehe jnsns move. >hahad at i said, the johnson move. drop here for regis, d dow2121 dr. j, i don't know they w wou give you this s e.e. >> i don't know whwhy eyeyave me this o o e eitr, except they are ththparent company of hairir cb for men. you can see, i'm not a member, never r ha b beea mber, don't plan on bebeina a member. apparently a l l o of ople have madede tt t cision as well. earnrnin d dow4%, and they're financing. stock down 20%0%ododay >> you took it betteteththanete would haveve tenent. >> pete might have donone e e ip over. >> how do we knonow e e atee is not an i ilalant
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>>ust kidding. itit a very good looking g goae. i it'carried on sportcenter. isis iridiculous. > cpetitive eating is a sport. thisis wkeke, joey chestnut, the 23-year-old fromom s j je, cacafoforn, set a world record at nathan's famous fouourtofof july internanaononalot dog eaeang contest on saturdayay, stuffing down n 68otot ds in ten mitete beating out his rivalal kobayashi for a fofothth yr in a row. both of them are fairlrly ininny too,o,ddddly >> kobayashi u ud d toe undefeatatlele. not so a anyrere >> not so o anorore. >e got caught up in thehe fe and glory of i ialall. a appently, he leaked out that secreresasaucthat goldman's en using. >oming up next, what yoyou' all beenenaiaiti for. the pornrn tdede isis trere way to profit from this recessionon pofof- supposedly recessionon pofof, 3
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biioioa year business in thehe united states alonon usushe dow component that't's rallied 5% in the e stst mth. the e ereralmarket has fallen 5%5% why is thihis meme wking? is it too latete tgegein? ick around, we'll tellllouou. it'sash blast -- the number one mascaraaunch in recent histor withix million scooped up already it's the go-to tube if you crave the biggest boldest shes of your life. u'll only find this big brush in lash blast. it doubles theize of your lashes rig before your eyes! so c'mon! join the simillion and counting -- try lash bla. only from easy breeeautiful covergirl. and, check out lash blt luxe with hints of shmer. try all 4 shades
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welcome back to "fast money." time to reveal the fast slash. we are talking about merck moving almost 3% on today's session on basically no news. set to hit a three month high over the past month. it's traded up 7% while the s&p 500 has been down by just about 5%. why the sudden love affair with merck, john? >> why the sudden love affair with merck? i really couldn't tell you. >> caught you a little off guard there. >> like you say, defense, consumer staples, healthcare, big pharma. those are areas you want to concentrate on. those are the reasons i have for merck here. >> valuation caught up to it. merck is fairly high valued. it's had a nice move. i think you take values on merck. i would reevaluate it on a 28.5. >> whatever business you're
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talking about, a simple rule always applies, supply and demand. as long as there's a market for sex out there, there will be an appetite for porn. we are at the porn trade right now. we've got to show you how corporate america is also trying to cash in. even from times from antiquity, the enjoyment of adult entertainment has had a fervent following. while the passage of time hasn't dimmed the controversy, these days the porn business is as mainstream as must see tv. with about $13 billion on the line, you can't blame corporate america for looking for a piece of the action. one sector looking to capitalize on a steady stream of income, cable and satellite tv operators. from on demand offerings to hd channel selection, big media is capitalizing on the after hours action. with erotic hits accessible at the touch of a button, cable and
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satellite operators are hitting the sweet spot. with a bountiful selection of free content on the internet, will the pay for porn providers see a letdown where it counts. here's your best ways to play the porn trade. all right. there are very few figures out there because a lot of the companies that operate in this world are privately held and a lot of the publicly traded companies are not forthcoming with their numbers. but we do know it is a $13 billion industry in the united states. nearly $100 billion globally. a lot of that is in in room entertainment, for instance, through these cable companies. pay per view. >> in room entertainment? >> that's what it's called. >> more money is made from in room entertainment than is made from mini bars. and the mini bar was basically one of the things that helped them get through some of the tough times. now they've got both those to draw from. most of the chains offer it. >> they go together. they don't have to advertise. a couple of hits at the mini bar, and you could find yourself with in room entertainment. >> for the cable companies, just
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to turn this into a serious business conversation because this is a serious business out there. it's at the cross-section of mainstream culture as well as big profits. and we're talking about pornography. the cable companies specifically, not only do they get the play from the pay per view, but also they're providers of broadband service. they've also got that increased revenue from people who are seeking to download porn. there certainly is a lot of free porn out there, isn't there, guy? >> i don't know. that was a loaded question. in terms of in room entertainment, buy a back gammon set, folks. it's much more interesting. i think cable vision frankly is probably the best company out there. it pains me to say it. having trouble at the 19 level. this was the level that broke down back in october. they have a lot of things going for them. frankly, it's a great company. it's not as well-run as they'd -- as i would like it to be. they spin off madison square garden, you might see a pop in the stock. i like cable vision above 19. otherwise, you buy it at 16.5. >> from dot comes to smartphones, we'll continue this discussion. >> i have one more. >> absolutely. always.
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>> netflix. can you get porn on netflix? >> actually, i do not know. >> i know blockbuster had taken away porn or never had it maybe. >> interestingly, we are seeing the reverse, where we're seeing big studios out there releasing big budget porn movies and stripping out the sex to make different versions to further monetize what they shot. for instance, we have r-rated versions in blockbusters. >> is that still porn? >> i don't know if you consider it porn, but it's from a porn studio. we'll continue the discussion as we take a look at the industry from smartphone makers to dot com, take a look at how they're capitalizing on porn. which leads up to my documentary, "porn business of pleasure," july 15th, 9:00 p.m. eastern time. do not go anywhere. oil is a big target as the day's biggest mover. we'll check in with joe on your trade on crude right after this.
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fluctuate in the market as oil does trade around the world. joe, what's the trade you're putting on right now? >> i think it's important to focus on the overnight activity. over the last four or five sessions, the overnight trading ranges have been larger by a two to one ratio than the day trading. you heard dennis gartman talk about it. and the mcclellan indicator. everyone is talking about the low beta versus the high beta. they have been long the high beta and short the low beta trades. what you need to do is get long. play from the long side, the low beta trades. take a look at petrobras. look at what they did today. take a look at the interday chart of that. take a look at hess. the interday chart of that as well. they both were supportive throughout the day and closed near those highs. those are the ways you want to play it now. avoid the high beta names, avoid the oil futures, exposure through the uso. look at the integrated low beta plays, and that's what you look at now in terms of playing energy from the long side. >> i just want to point out. joe, i disagree.
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i think petrobras is an extremely high beta story. i also think that petrobras is a high risk under the discovery that drove a lot of returns. i think that is what it is under pressure from. i'd be cautious. >> takes two to trade. joe terranova, thanks so much. >> coming up next, this trading guru never leaves home without it. today it did pay off handsomely. we'll tell you who made the most money. plus the final trade tomorrow morning. we've got it for you. (marco andretti) i race to win. i knowow when itit the perfect time to chanany tires. when it cocomes tohaving i know when n to cngmy blade. nnouncer) gillette fusn'indicator strip fas s tohite whent may be time to change. esh blade. tt shave. chk my blood sugar before i gon stage.
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time to o te y youho made ththmomostoney today. oracle of omomahtataki the top spot as his bet on amemerin n express paid off.. hobibig? ststk rallied 5%, he made e a ol $177 million. good foror youororle. time f forhehe fal trade. tim? >> mvt, best selelleouout ere. improving g operioiomargins. great t stor >> yum. >> put my money y whermymyouth is, childrenen p pla. >> i'm melissa lee.. thanks so mumuchoror wching. see you back here 12:4:45 r r th halftime report and d agaiatat 5:00 p.m. fofor e e bishow. haveve g gre night, everybody.
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